History of Utility Deregulation
The breakup of the oil and gasoline monopoly by the federal government in 1911 led to increased competition, industrial innovation, and more choice with lower prices for consumers.
In 1978 the airline industry was deregulated, and the result was increased competition, cost-reducing innovations in the industry, and more choice with lower prices for consumers.
The telecommunications industry was de-regulated in 1996, resulting in more competition, money-saving technological advances, and more choice with lower prices for consumers. (A long-distance phone call that might have cost 20 or 30-cents PER-MINUTE just a couple decades ago can now be made for less than a penny... sometimes even less!)
DEREGULATION OF THE ELECTIC UTIILITY INDUSTRY IS NOW UNDERWAY IN THE UNITED STATES, AND PROMISES THE SAME BENEFITS: INCREASED COMPETITION, INCREASED TECHNICAL INNOVATION, AND LOWER ELECTRICITY PRICES, ESPECIALLY FOR BUSINESS USERS.
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F.A.Q.
Can I take advantage of electricity deregulation in my home?
In most cases, the answer is "not yet". Electricity market "aggregators" (companies or associations that buy electricity at wholesale rates on behalf of you and all their other clients) are currently primarily interested in businesses because of their typical larger use of electricity. This makes it easier for them to negotiate favorable discounts from electric utilities for large amounts of electricity at wholesale prices.
Will I still be a customer
of my local utility?
Yes - the only difference is that you will also be saving money as a retail customer of your electricity aggregator. Your local utility owns the power lines that carry electricity to your business or institution, and they will continue to bill you for the "delivery" of electricity, at rates governed by the state. The actual electricity will be supplied by generating utilities whose electricity is purchased by your utility aggregator on your behalf. |
Will I notice any changes
to my service?
When you make the switch to buying electricity from the deregulated market, your electrical service will continue uninterrupted. The only change will be a separate bill from your utility broker for your new lower-cost electricity supply. Although you will continue to receive a utility bill, the amount will reflect only the charge for basic power transmission over the utility's infrastructure.
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Actual
Savings
Examples
New Jersey Metal Forging and Stamping Company:
Average monthly electricity use of 100,000 kWh (kilowatt-hours). Since switching to an aggregator to purchase electricity from the deregulated market, has seen an average 18% decrease in electric bills, projecting to save the company nearly $30,000.00 in their first year of deregulate electricity service.
Small New England Seafood Wholesaler/Retailer:
Large ice-making and cooler facilities in this small family-run business require nearly 10,000 kWh of electricity per month. After switching electricity providers, they realized a savings of over 17% on their monthly power bill, netting over $2400.00 per year in savings.
Rhode Island Nursing Home and Care Center:
This facility was paying an average of $0.1012 per kWh until switching to an aggregator of deregulated electricity. Their rates dropped to an average of $0.0802 per kWh, for an annual savings of over $19,000 (approx 21% savings annualized).
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